Opened in Asia at Y78.20 on a bid tone and lifted to Y78.35 on early demand in the crosses, strong supply met and the rate pared gains as traders reported decent 2 way flow from Japanese banks. USD continued sideways with trade stuck in a tight 10 pip range. On the downside reported stealth bids seen at Y78.00, a break triggers stops to semi-official bids at Y77.90. Strong offers seen at Y78.50 and above here dealers report of exporter interest to sell until the month end. EUR/JPY opened at Y96.05 and consolidated sharp gains seen in Europe following comments from ECB Draghi. The cross squeezed to Y96.20, before easing back on profit take sales, holding above Y96.00 on unsubstantiated market talk of a momentum fund supporting down here. Trade continued flat ahead of Europe and settled around Y96.10. A break of Y96.00 on the downside opens a deeper move towards bids at Y95.60, stronger at Y95.50. Strong offers reported at Y96.50, with stops set, through here opens Y96.67 (20 Jul high), ahead of Y96.82 (19 Jul high).
EasyForexNews Research Team